E7-1 Preparing sales budget and production budget The sales department of Macro Manufacturing Co. has forecast sales for its single product to be 20,000 units for June, with three- quarters of the sales expected in the East region and one-fourth in the West region. The budgeted selling price is $25 per unit. The desired ending inventory on June 30 is 2,000 units, and the expected beginning inventory on June 1 is 3,000 units.

Prepare the following: a.

A sales budget for June. b.

A production budget for June.

Use this format:

E7-1 C. Mack Manufacturing Co. Sales Budget For the Month Ended June 30, 20-- Unit Sales Unit Selling Total Volume Price Sales 15,000 $25 $ 5.000 $25 $500,000 Region East West Total C. Mack Manufacturing Co. Production Budget For the Month Ended June 30, 20-- Units Sales (from sales budget) Plus desired ending inventory, June 30. Total Less estimated beginning inventory, June 1 Total production 2.000 22.000 19.000